Given the decline in retail sales – along with other warnings on business credit – I believe it’s important for Australian SME businesses to review their business finance status now. Like a Fire Safety Plan – it’s important to be prepared BEFORE the increasingly likely upcoming credit crunch.
We’re seeing a noticeable dip in retail sales, a signal we can’t ignore. I’m also getting situation updates from a number of financial providers that credit risks are increasing.
So what can you do today to prepare?
Here are a few steps that businesses can take today in preparing navigate this increasingly challenging period:
- Cash Flow Analysis: Assess your current cash flow situation. Identify any gaps and take steps to bridge them before they widen.
- Credit Line Reassessment: Review your existing financial credit lines. Are they sufficient to support your business through a downturn? Are they from a provider you can trust not to change the rules? If not, now is the time to explore alternatives.
- Expense Management: Scrutinize your expenses. Trim the non-essentials and focus your outgoings on items that drivesrevenue and growth.
- Supplier Negotiations: Talk to your suppliers about extending payment terms – BEFORE you need to do it. A small extension can provide a surprising amount of much-needed breathing space.
- Customer Relations: Strengthen your relationships with key customers – so you understand how their business is doing AND how well they think you’re meeting their needs. Happy, loyal customers can be a stable source of revenue during tough times.
- Diversification: Look for new revenue streams. Diversifying can protect your business from sector-specific downturns.
This might feel overwhelming, but remember, preparation is key. Chunk these steps into smaller tasks – such as catching up with one customer a week.
Don’t wait for the storm to hit—start fortifying your business now. The effort you put in today will pay off tomorrow – even if the worst DOESN’T happen.
𝐈𝐧 𝐭𝐡𝐞 𝐞𝐧𝐝, 𝐢𝐭’𝐬 𝐧𝐨𝐭 𝐚𝐛𝐨𝐮𝐭 𝐰𝐞𝐚𝐭𝐡𝐞𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐬𝐭𝐨𝐫𝐦 𝐛𝐮𝐭 𝐥𝐞𝐚𝐫𝐧𝐢𝐧𝐠 𝐭𝐨 𝐝𝐚𝐧𝐜𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐫𝐚𝐢𝐧. 🌧️💃
If you’re not quite sure where to start, then book your FREE Cash Flow Strategy call today.
